Recently, there has been a surge of tourists visiting Japan from abroad, which has created increased inbound demand. As a result, spending by foreign visitors to Japan has also increased.

Many visitors to Japan are familiar with well-known elements of Japanese culture (e.g., sushi and ramen). However, many tourists are also informed about unique features, including hot springs, convenience stores, and Japanese subcultures such as video games and anime. Inbound business that targets foreign visitors to Japan—especially those who seek out specific attractions or want to buy particular items—has become increasingly active in recent years. The inbound market is expected to continue to expand.

This article explains inbound spending trends, including different types of spending and their importance to Japan’s economy. We also include a breakdown of inbound spending amounts by country and item.

What’s in this article?

• What is inbound spending?
  
• The importance of inbound spending
  
• Types of inbound spending
  
• Inbound spending by category
  
• Inbound spending by country
  
• Measures to stimulate inbound spending
  
• Keys to success for inbound business
  
• How Stripe Terminal can help
  

What is inbound spending?

Inbound spending refers to tourists’ consumption activity within Japan when visiting from overseas. Since the end of the COVID-19 pandemic, it is common to see travelers visiting urban tourist attractions and many other regions of Japan. Japanese cultural experiences, gourmet cuisine, and shopping attract the attention of many foreigners.

Inbound spending occurs in Japan instead of in the traveler’s home country. It can include purchasing services (e.g., accommodations, sightseeing experiences, and restaurant dining) or goods (e.g., food and cosmetics). Many believe that an increase in inbound spending could have a direct impact on domestic consumption and income, which could help revitalize the Japanese economy.

According to the Ministry of Economy, Trade and Industry, spending by foreign visitors to Japan fell significantly in 2020 due to the COVID-19 pandemic. However, spending in 2019 reached a record high of ¥4.8 trillion. When the pandemic subsided, the Japan Tourism Agency expected spending in 2023 to reach ¥5.3 trillion. Their goal is to achieve ¥15 trillion in spending by 2030.

The importance of inbound spending

Inbound spending is important because it contributes to the development of the Japanese economy. One example is “spending sprees” by foreign tourists at stores that offer tax-free shopping. This includes items such as electrical appliances, cosmetics, food, alcoholic beverages, daily necessities, pharmaceuticals, and clothing. When tourists shop at mass retailers—such as drugstores and apparel shops—they contribute to Japan’s expanding inbound market.

In addition, inbound spending is viewed as a new customer base in Japan. Many believe it can help prevent worsening economic stagnation due to declining birth rates, aging populations, and population decline in rural areas. Inbound spending is a component of the Visit Japan Campaign, which is based on the government’s 2003 declaration of Japan as a “tourism-oriented country.” The campaign’s goal is to expand the inbound market by stimulating tourists’ domestic consumption.

To do so, it is important to promote tourism and regional development at the prefectural, municipal, and business levels. Coordination with the government to develop tourism infrastructure is also necessary. To achieve this, businesses should try to fully understand the diverse needs of tourists visiting Japan from overseas, which can help attract inbound customers.

Types of inbound spending

Inbound spending can be classified into two major types:

Consumption of goods

This type of spending involves paying money to own tangible, physical goods. Many items can be classified as goods, but examples include food, daily necessities, clothing, electrical appliances, hobby-related items, and character goods.

Consumption of experiences

In contrast, consumption of experiences refers to spending on services or activities. Although the customer does not physically hold a product in their hands with this type of spending, the experience itself has high value. It can become a memory directly linked to the quality of the trip, making it just as important as the consumption of goods in the inbound market.

From an inbound perspective, travel itself can be classified as consumption of experiences. Here are some examples:

• Staying at a hot spring inn with a long history
  
• Learning local crafts, such as glasswork and pottery
  
• Exploring nature, such as rice planting and fruit picking
  
• Cooking local specialty dishes and foods
  
• Touring sake breweries and tastings
  
• Attending a kabuki performance
  
• Watching sports matches such as baseball or sumo wrestling
  
• Visiting a theme park, museum, or aquarium
  

Inbound spending by category

Here is what foreign tourists spend money on while visiting Japan. Using data from the Japan National Tourism Organization (JNTO), we provide inbound spending amounts for 2024 divided by category.

According to the data, the average travel spending per foreign visitor to Japan in 2024 is ¥226,851. This amount can be broken into average expenditures per person for a variety of categories.

Purchases of goods account for a large proportion of total consumption. However, the consumption of experiences—such as accommodations, dining, transportation, and entertainment—are an indispensable element of travel.

Furthermore, in the case of consumption of experiences, we see that travelers often seek quality of service and enjoyment value, rather than essentials. Tourists spend money on transportation to travel from one place to another, but they also spend money specifically for the services associated with the mode of transportation.

For example, the fare for the Shinkansen bullet train is classified as a transportation expense. Even if it costs a little more, many foreign tourists visiting Japan experience the bullet train as a memorable part of their trips. The Shinkansen is safe, comfortable, and speedy, allowing passengers to enjoy ekiben (station boxed lunches) and the scenery while traveling to their destinations.

From this perspective, it is very important to provide services that meet the varying needs of foreign travelers, even with a necessity such as transportation.

Shopping locations popular with foreign tourists

According to JNTO data, convenience stores (i.e., Konbini) were the most popular shopping destination for foreign tourists in 2024. Here are the spending amounts for the top five shopping locations:

• Konbini: ¥516 billion
  
• Duty-free shops at airports: ¥356.6 billion
  
• Department stores: ¥291.5 billion
  
• Drugstores: ¥231.2 billion
  
• Supermarkets: ¥135.8 billion
  

It might be surprising that convenience stores hold such an overwhelming lead. However, these stores offer many features, such as Konbini payment, year-round service, and high-quality products at reasonable prices.

Furthermore, this data indicates that price is an important factor for foreign tourists. For example, drugstores and supermarkets rank high on the list, which shows that many visitors to Japan are attracted to items that can be purchased at reasonable prices. Drugstores typically carry a wide selection of cosmetics, health foods, and supplements that tend to be popular among budget-conscious travelers.

Inbound spending by country

Here are the spending amounts of foreign visitors to Japan by country, according to the Japan Tourism Agency’s Inbound Consumer Spending Trends Survey published in July 2025:

• China: ¥516 billion
  
• US: ¥356.6 billion
  
• Taiwan: ¥291.5 billion
  
• South Korea: ¥231.2 billion
  
• Hong Kong: ¥135.8 billion
  

Inbound spending by travelers from China and the US is particularly significant. To effectively stimulate inbound spending, businesses can research business practices, interests, and concerns of travelers from these two countries.

According to the data, total travel spending by foreign visitors to Japan amounted to ¥2.525 trillion. This is an increase of 18% compared to the same period in 2024, marking a record high for the quarter. With spending by foreign tourists in Japan on the rise, it is also important for businesses to develop creative products and services that can meet the needs of visitors from various countries. This could help expand the inbound market.

Measures to stimulate inbound spending

Here are some of the most effective measures for stimulating inbound spending:

• Support for multiple languages: Providing information and customer service in multiple languages can help ensure that foreign tourists visiting Japan have an enjoyable stay.
  
• Systems to improve convenience: Businesses can offer multiple cashless payment methods and free Wi-Fi that has been enhanced for inbound travelers.
  
• Reevaluation of tourism resources: Businesses can consider developing new tourist attractions and leisure activities that maximize the potential of tourism resources and unique regional characteristics. This could help provide visitors with a more fulfilling and diverse experience.
  
• Cultural experience–based services: Offering hands-on services—such as flower arrangement, tea ceremonies, calligraphy, zen meditation, and kimono dressing—can allow visitors to experience various traditional Japanese cultures.
  
• Introduction of food culture: Businesses can provide opportunities for visitors to enjoy local specialties and budget-friendly gourmet foods. This can include food-related experiences and cultural exchanges, in addition to cuisine and high-quality service that can only be experienced in Japan.
  

Keys to success for inbound business

In this article, we explained inbound spending, why it is important, and what businesses can do to stimulate it.

The most important measure is to provide products and services that are attractive to tourists, making their stays in Japan comfortable, fulfilling, and enjoyable. Therefore, increasing inbound spending requires tourism infrastructure development, including support for multiple languages, free Wi-Fi, and payment methods ideal for inbound tourism.

If Japanese businesses respond to the needs of foreign tourists and prepare for the predicted expansion of inbound demand, it could lead to business success and revitalization of the local economy.

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